Can Body20 assign its right of first refusal to another entity or person?

According to Body20's 2025 Franchise Disclosure Document, Body20 has the right to assign its right of first refusal to another entity or person. This means that if a franchisee intends to transfer their interest in the Body20 franchise, Body20 has the first option to purchase that interest under the same terms offered by a third party. However, Body20 can then assign this right to another party, allowing that other entity or person to step in and purchase the franchise interest instead of Body20 itself.

This assignment can occur either before or after Body20 initially exercises its right of first refusal. This provides Body20 with flexibility in managing franchise transfers and potentially allows them to facilitate sales to preferred partners or investors. However, there are exceptions where Body20's right of first refusal does not apply, such as transfers to an entity under specific permitted transfer clauses, transfers upon death, incapacity, or bankruptcy, or transfers to the franchisee's spouse, son, or daughter.

For a prospective franchisee, this means that even if they find a buyer for their Body20 franchise, the ultimate buyer could be someone different if Body20 assigns its right of first refusal. It's important to understand these conditions and potential outcomes when considering a franchise transfer. This clause ensures Body20 retains control over who joins their franchise system, either directly or through assignment.